Question

What purpose does the OREA Form 120 serve in a real estate transaction?

A) Documenting the initial agreement between the seller and the buyer.
B) Adding, deleting, or revising terms previously agreed upon by the seller and buyer.
C) Finalizing the sale and transferring property ownership.

Select the accurate description of the OREA Form 120 based on the provided information:

A only
B only
C only

Answer 1

The OREA Form 120 is used for adding, deleting, or revising terms previously agreed upon by the seller and buyer in a real estate transaction.

Step-by-step explanation:

The OREA Form 120 serves a specific purpose in a real estate transaction. Among the options provided, 'B) Adding, deleting, or revising terms previously agreed upon by the seller and buyer' is the accurate description of OREA Form 120's function.

It is an amendment form used to alter terms or details in an already existing agreement of purchase and sale. Its use can include changing the closing date, altering the purchase price, adding or removing conditions, or adjusting other terms to which both parties have already consented. It is an essential part of the negotiation process after the initial agreement has been signed, providing a formal way to document any agreed-upon changes.